S T A T E   O F   N E W   Y O R K
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                                    867
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2019
                                ___________
 
 Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Higher Education
 
 AN ACT to amend the education law, in relation to establishing the rural
   teacher education loan repayment program
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The education law is amended by adding a new section 676-a
 to read as follows:
   § 676-A. RURAL TEACHER EDUCATION LOAN REPAYMENT  PROGRAM.  1.    DEFI-
 NITIONS. FOR THE PURPOSES OF THIS SECTION:
   A.  "RURAL  SCHOOL  DISTRICT"  SHALL  MEAN A SCHOOL DISTRICT PROVIDING
 SERVICES WITHIN A RURAL AREA.
   B. "RURAL AREA" SHALL MEAN A COUNTY WITH A POPULATION  OF  TWO-HUNDRED
 THOUSAND  OR  LESS;  OR  A TOWN WITH A POPULATION DENSITY OF ONE HUNDRED
 FIFTY OR LESS PER SQUARE MILE.
   C. "STUDENT LOAN EXPENSES" SHALL MEAN THE AGGREGATE  TOTAL  OF  ANNUAL
 STUDENT  LOANS  FOR  THE  COST  OF ATTENDANCE AT AN UNDERGRADUATE AND/OR
 GRADUATE INSTITUTION LEADING TO TEACHING CERTIFICATION. INTEREST PAID OR
 DUE ON SUCH LOANS SHALL BE  DEEMED  TO  BE  ELIGIBLE  FOR  REIMBURSEMENT
 PURSUANT TO THIS SECTION.
   2.  ESTABLISHMENT. A. THERE SHALL BE ESTABLISHED WITHIN THE DEPARTMENT
 THE RURAL TEACHER  EDUCATION  LOAN  REPAYMENT  PROGRAM.  THE  DEPARTMENT
 SHALL,  IN  COOPERATION  AND COORDINATION WITH THE NEW YORK STATE CENTER
 FOR RURAL SCHOOLS, ANNUALLY IDENTIFY RURAL SCHOOL  DISTRICTS  WHICH  ARE
 HAVING  DIFFICULTY ATTRACTING AND RETAINING TEACHERS, AND DEVELOP CRITE-
 RIA UPON WHICH AWARDS SHALL BE MADE TO TEACHERS WHO BECOME  EMPLOYED  BY
 SUCH  IDENTIFIED  RURAL  SCHOOL  DISTRICTS WHO AGREE TO PROVIDE TEACHING
 SERVICES WITHIN SUCH RURAL AREA FOR NOT LESS THAN FIVE YEARS.
   B. THE COMMISSIONER IS AUTHORIZED, WITHIN AMOUNTS MADE  AVAILABLE  FOR
 THE  PURPOSES  OF  THIS SECTION, TO MAKE AWARDS BEGINNING JANUARY FIRST,
 TWO THOUSAND TWENTY, TO A TEACHER WHO AS DETERMINED BY THE  COMMISSIONER
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04027-01-9

 S. 867                              2
 
 TO BE TAKING EMPLOYMENT IN A RURAL AREA IDENTIFIED AS BEING UNDERSERVED,
 WHO  IS  LICENSED  TO TEACH IN THIS STATE AND WHO AGREES TO FOR AT LEAST
 FIVE YEARS TEACH IN SUCH RURAL AREA. SUCH A TEACHER  SHALL  BE  ELIGIBLE
 FOR A LOAN REPAYMENT AWARD OF UP TO TWENTY THOUSAND DOLLARS PER YEAR.
   3.  AWARDS.  RURAL  TEACHER  EDUCATION  LOAN REPAYMENT AWARDS SHALL BE
 AWARDED ANNUALLY. SUCH AWARDS SHALL BE ALLOCATED  BY  THE  PRESIDENT  IN
 ACCORDANCE  WITH THE CRITERIA ESTABLISHED PURSUANT TO SUBDIVISION TWO OF
 THIS SECTION.
   4. LIMIT ON AWARDS. LOAN REPAYMENT AWARDS MADE TO A  TEACHER  PURSUANT
 TO SUBDIVISION TWO OF THIS SECTION SHALL NOT EXCEED THE TOTAL QUALIFYING
 OUTSTANDING  DEBT OF THE TEACHER FROM STUDENT LOANS TO COVER TUITION AND
 OTHER RELATED EDUCATIONAL EXPENSES, MADE BY OR GUARANTEED BY THE FEDERAL
 OR STATE GOVERNMENT, OR MADE BY A  LENDING  OR  EDUCATIONAL  INSTITUTION
 APPROVED UNDER TITLE IV OF THE FEDERAL HIGHER EDUCATION ACT. LOAN REPAY-
 MENT AWARDS SHALL BE USED SOLELY TO REPAY SUCH OUTSTANDING DEBT.
   5.  DEFAULT.  WITHIN SUCH TIME AS THE COMMISSIONER SHALL BY REGULATION
 PROVIDE, A RECIPIENT OF AN AWARD SHALL HAVE PRACTICED AS A TEACHER IN AN
 RURAL AREA IN THE STATE. IF A RECIPIENT FAILS TO COMPLY FULLY WITH  SUCH
 CONDITIONS, THE PRESIDENT SHALL BE ENTITLED TO RECEIVE FROM SUCH RECIPI-
 ENT AN AMOUNT TO BE DETERMINED BY THE FORMULA:
   A = 2B(T-S)
       ______
           T
 IN  WHICH "A" IS THE AMOUNT THE PRESIDENT IS ENTITLED TO RECOVER, "B" IS
 THE SUM OF ALL PAYMENTS MADE TO THE RECIPIENT AND THE INTEREST  ON  SUCH
 AMOUNT WHICH WOULD BE PAYABLE IF AT THE TIMES SUCH AWARDS WERE PAID THEY
 WERE  LOANS  BEARING INTEREST AT THE MAXIMUM PREVAILING RATE; "T" IS THE
 TOTAL NUMBER OF MONTHS IN THE RECIPIENT'S PERIOD OF OBLIGATED  SERVICES;
 AND  "S"  IS  THE  NUMBER OF MONTHS OF SERVICES ACTUALLY RENDERED BY THE
 RECIPIENT. ANY AMOUNT WHICH THE PRESIDENT IS ENTITLED TO  RECOVER  UNDER
 THIS  SUBDIVISION SHALL BE PAID WITHIN THE FIVE-YEAR PERIOD BEGINNING ON
 THE DATE THAT THE RECIPIENT FAILED TO COMPLY WITH  THIS  CONDITION.  ANY
 OBLIGATION  TO  COMPLY  WITH  SUCH PROVISIONS SHALL BE CANCELED UPON THE
 DEATH OF THE RECIPIENT. THE COMMISSIONER SHALL PROMULGATE REGULATIONS TO
 PROVIDE FOR THE WAIVER OR SUSPENSION OF ANY  FINANCIAL  OBLIGATION  WHEN
 COMPLIANCE WOULD INVOLVE EXTREME HARDSHIP.
   6.  RULES.  THE  COMMISSIONER  SHALL  CONSULT  WITH THE NEW YORK STATE
 CENTER FOR RURAL SCHOOLS, AND THE COMMISSIONER, IN COORDINATION WITH THE
 CORPORATION, SHALL PROMULGATE REGULATIONS TO EFFECTUATE  THE  PROVISIONS
 AND PURPOSES OF THIS SECTION.
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law; provided, however, that effective immediate-
 ly, the addition, amendment and/or repeal of any criteria, rule or regu-
 lation  necessary  for  the  implementation of this act on its effective
 date are authorized and directed to be made and completed on  or  before
 such effective date.